Skip to main content

tv   Closing Bell With Maria Bartiromo  CNBC  March 19, 2012 4:00pm-5:00pm EDT

4:00 pm
i'll see you tomorrow. maria continues from the new york stock exchange with more of the "closing bell." [ applause ] and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." welcome back to the floor of the stoblg exchange. at close at 4:00 monday, closing late in the session today. bank of america rallied above $10 a share early on but the stock reversed course late in the day, came off of the levels on some rumors across trading desks that company may be planning a secondary offering. coming up on the program, we are getting an exclusive look when i sit down with wells fargo
4:01 pm
cfo tim sloan. he joins us momentarily. stocks held steady once again, the company's shares are set to close above $600 for the first time ever. company announcing its first dividend today in 17 years as well as planes it buy back $10 billion in stock. apple, among the hajor highlets on the streets today. on this monday afternoon, dow jones industrial average in positive territory just by a fraction, giving up much of an earlier rally. up 13,238. nasdaq picking up 23 point. once again the winner offer on the session. moving into tech in a big way, 3,078. apple, leadership stops there. and very close to all-time high, up 5.5 point at 1409. bob, what a day? >> i don't know if there is a huge reversal. i think the important thing is we still ended up on the upside. if you put up the sectors, all
4:02 pm
of the risk sectors are up. financials are again leading. they did come off highs on bank of america led things down a little bit. but tech, financials, materials, industrials, all the billing leadership stocks and good heavens, ending the quarter in other week or so. the nasdaq is up 18% so far this quarter, maria. one of the greatest that technology has ever had. still no signs as an attempt to sign off on it. >> and into the sectors you want it see, financials and tech. i think it is interesting to see that rates for the ten-year are at four-month highs. you see money come out of fixed income, find a home and stocks. >> yeah. and the question is how much after head wind will this be for stocks. put up the ten-year treasury yield. you're right, we see treasury moving up on the long end and it's not hurting stocks. even today, moving up on the ten-year and stocks moving up as interest rates are moving up. at some point it might be a head
4:03 pm
wind but right now, moving up on growth prospects. not so much on inflation concerns. i think that's the big positive why people are recognizing and the markets are looking good. >> you really want to see this movement if it is about real fundamentals. let me get your take on housing. the home builder sentiment is up. a lot of money getting into home building stocks recently. but you have to wonder if this is another home fake. >> good news is, continuing to rise, still not great. coming in at 28. anything below 50 is not great. but slowly but surely, bismal for several years. sales numbers for tomorrow, we will see how sales numbers go over all for markets. we will get kb homes this week. i think the important thing is so far numbers have been good. seeing 20 to 30% increase anecdotely in new orders, spring, year over year. that's pretty good. problem maria, is a lot of stocks have moved to new highs in anticipation that will happen.
4:04 pm
now the question is, can we get them to move further up. account bulls get them to move further up. >> it is interesting to see financials do so well on the heels of federal reserve stress test last week. bank of america reversing course. i'm hearing they will do a secondary. that the rumor out there. we have no confirmation but we went with that because it already moved stock. stock is down 2.5% on these rumors. today a big reversal that had been above $10 a share. >> remember, this stock -- >> we reached out to b of a but they have no comment on this. >> volume has been huge here. i don't have anything to say whether they doll a secondary or not but the stock doubled since december. it was $4.90 i think at the bottom in december. >> bob, bob, bank of america up 72% in three months. >> there you go. >> and 72%. treaty sweet return. >> $10. it doubled effectively. so at some point in which people hold on to the stock for a while, even far month will take profits on it. i wouldn't be surprised.
4:05 pm
>> important thing, it is not just stress test. but high yield curb, is very good news for banks. it helps their lending efforts tremendously. >> all right, bob, see you later. thanks so much. bob with the latest there. first, apple thrilling consumers with the ipad and now thrilling investors with the dividend payments. they like it so much it helped the stock close above $600 a share. that is the first time ever. by the way, at 500 a week and a half ago. apple shares are up an astounding 48%, so far this year. courtney reagan with the announcement. >> unbelievable move. the world's largest company announ aannouncing, using a total of 4 r5 billion in cash, still leaving more than $52 billion of current cash available for strategic opportunities in the future. the $45 billion will come from apple's current domestic cash
4:06 pm
and future expected earnings in order to avoid the hefty tax consequences of repay treating roughly $64 billion in cash located overseas. while steve jobs opposed dividends, cook and oppenheimer have been hinting soon announcing plant for cash pile so expect a dividend. that buyback was an added bonus. dividend to bin july 1st was based on apple's fiscal qe4 financials and 2008% increase from 12 cent dividend last paid 17 years ago. now s&p's silver blat point out the record for largest initial annual dividend. the second largest total dividend payer behind wireless carrier partner at&t. apple's dividend propels s&p 45u7b indicated dividend rate to new all-time high of $30.11 per share.
4:07 pm
noting on squawk box this morning that the 2% u.s. still trails emerging market index dividend yield of 2.7%. apple shares, as can you see, did close above $600 a share for the first time but ceo tim cook says the company is not considering a stock split. at this time it would only consider doing so if it is in the shareholder's best interest. cook made a point to say innovation is the most important at apple and oppenheimer has a pipeline of new product and customers will be very pleased. back to you. >> thank you so much. stocks near multiyear highs. there s there enough momentum to push them higher? investor sentiment has become more bullish. here it weigh in is jim paulson and tim freeman. gentlemen, it is good to have you on the program. good to see you. thank you so much for joining us. jim, let me kick it off with you.
4:08 pm
when would you expect it and how significant a correction are we talking? >> i do think one is inevitable, maria. but i think it is going to be really hard to call it. i think the number one mistake investors made since 2009 is they tried to call these corrections. even some of which have been big. but i think it is hard. i got get a call when they start and call when they end. a lot of people got out and never back in. i think the best thing to do is focus on the fact you're going to have a correction at some point, a longer term yet. a lot to like here. i think there's going to be a couple other things that will propel stocks yet. one is i think we are still underestimating growth. i think estimates around 2.5%. i think up to 3. well find out if it is growing to 3. second thing is we will come to find out that the world of economies will reaction sell rate in second half. both of which could add more excitement to stocks. whether we pull back from here or 145u7b or 1550, i don't know. but we will get one but i think i would stay the course. >> stay the course.
4:09 pm
what do you think, tim? would you be poised to take money out of this market given the fact the nasdaq is up 18% year to date. money moving into equity. is it time to take a step back? >> i don't think so. i think you need to belong here. if you look at derivatives markets. they are pointing to lack of investor concern. the world is more worried as we good out in time. if you look at s&p. risk is certainly priced greater in 2013 and 14 and it is right now. investors are not very concerned right now. most of the people that i speak tore leaning long here, participating in the rally. i think there is a tremendous amount of money left to be put to work in markets right now. >> that's key rb right? so much money on the side lines because people are fearful. just came off the stress test. european crisis they are worried about. is it time it take your money out of fixed income and put it in stocks?
4:10 pm
>> i will look at a balanced portfolio. i think we are experiencing the power of money supply and what federal and central banks can do to risk assets across the globe. europe certainly -- risk between german bond, spanish bond, italian bond, those spreads are very, very tight. liquidity in the mark set very high. again, i think it is a prime time to be on equities here as a result. >> good to see you. as always we appreciate your time, gentlemen. thank you very much. wells fargo just became the biggest u.s. bank by market value. how does the bank plan to stay ahead of the competition, continue to reward shareholders? are we looking at higher dividends in years to come? cfo tim sloan is with me for an exclusive interview. we are going back in the polls. ron paul has fallen down. how much longer can ron paul
4:11 pm
continue to run for presidential nomination, even though he has fallen down in the polls. well ask him at 4:30 p.m. eastern. before the break, take a look at highlight today on cnbc. >> people are underweight equities and cash is starting to burn a hole in their pockets, returning 0. now with fixed income going the wrong direction, some of that money will findity way in equities. we're in a pretty good sweet spot right here. >> while we are breathing a sigh of relief from europe, we don't think the long-term risks have been solved. we think they've just been delay pepd we are finding individual companies we do like all around the world, in america, in emerging markets. we are being very selective in which markets we are buying. >> we have our numbers by $8, and numbers by $3 on the basis of stronger than expected demand, conditions and frankly, much weaker supply outlook and
4:12 pm
we initially anticipated. >> a lot of traders we noticed in the last week had taken off some positions. in fact, up to 2.5% of all of the commodities, pulled off. that's about 600,000 future contracts. that tells me we're all in the same boat. we can go either way from here. "why did i roll over my i.r.a. to scottrade?" "for starters, it didn't cost me anything." "and i got a one-hundred dollar cash bonus for rolling over by april 16th." "i like bonuses." "plus at scottrade, there are thousands of commission-free investments." "and if i need help, i can find it online, by phone or at one of over five-hundred scottrade locations." "it's why more investors with i.r.a.s are saying.." "i'm with scottrade." ♪ [music] two of the most important are energy security and economic growth. north america actually has
4:13 pm
one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our economy.
4:14 pm
it saves us so much time and money. postage meters are a lot more expensive. can you print only stamps? no. first class. priority mail. certified. international. and the mailman picks it up. i don't leave the shop anymore. now it's all under my control. and i like that. [ male announcer ] learn more at stamps.com/tv and get a 4-week trial plus $100 in extras including a scale and free postage to use during your trial. go to stamps.com/tv and never go to the post office again.
4:15 pm
reporting reporting earnings this afternoon, current quarter earnings in line for the first quarter, at 57 cents. just over a billion in revenues with stock down about 5% here after hours. its its outlook for second quarter, slightly below. expectations are earnings of 60%. projecting earnings of 57 to 61%. flat to slightly better than earnings expectation as can you see there the stock had been up 2% ahead of earnings but it's
4:16 pm
getting hit hard. meantime adobe of course, flash not in apple products. apple closing out today at 601.10 extending a little bit after hours. volume not quite as big, maria, as what we saw the first time they hit $600 a share last week. nonetheless, definitely a big recovery, especially when you look that premarket. back to you. >> thank you so much. wells fargo is celebrating 160 years. 160th anniversary today with the ringing of the closing bell. after passing grade on federal reserve stress test, increased dividends. reports say they are looking to branch out overseas. joining me now, after just ringing closing bell, is tim sloan, cfo with wells fargo. to great to have you on the program. >> good to be here. >> usually you are remote. >> it is great to be here in person. >> what a monumental anniversary. 160 years today in business.
4:17 pm
just becoming the largest bank by market value. how do you stay there? >> well, we have to continue doing what we're doing. we've been in business for 160 years because after singular focus on the customer. wells fargo was founded, as you mentioned, 160 years ago right here in new york. henry wells, william fargo got together at the old aster house, on broadway, and signed the papers. and here we are today. >> that is real american success story and we love those. let me ask you about the stress test. >> sure. >> your take on the stress that you had to look at in terms of measures, if the bank has enough wiggle room, what is your take post stress test? >> the most important thing is that our capital plan, capital actions were are not rejected to bit feds. increasing at 83% or 10 cents a share. we were very pleased to be able to do that. the stress test itself was pretty severe.
4:18 pm
assumptions were much more difficult than what we saw in the great recession from a couple years ago. we were really pleased to get our results. it is a real tribute to diversified financial services business that we have. also, we were really pleased that the industry performed well too. >> so when you look at fundment yals, that support your business, what can you tell us about credit? what can you tell us about loan growth right now? how have things changed the last couple months? >> i'm not going to talk about the last couple months because we are still in the midst of the quarter. but last year we saw loan growth in high digit rate. we are continuing to see the growth across the franchise. as you probably know, we are the largest mortgage originator in the country. things are going well for wells. >> what about mortgages right now? there is a lot of debate on whether we have seen the worse net housing, how do you see it? >> there is no question we've been through a severe housing recession. not a hundred percent clear whether we have seen the worst of it.
4:19 pm
we have seen some statistics that show the mark set getting better. we will see some pressure in terms of prices being down. but we do feel we are close to hit bottom. >> are you looking, at it point, to expand the retail brokerage part of the business? >> oh, yeah. great business for us. >> that's one of the benefits we got when we put wells fargo and wachovia together. terrific platform. we are very interested in continuing to grow that. both organically and through selective acquisitions. >> selective acquisition says what people want to know more about. >> we don't comment on any specific acquisition. our primary focus is to grow organically. but if an acquisition comes along, so much the better. >> this has to be tough for that part of the business. the capital markets, even though the indexes are doing well, has been troubled. because people are not participating. >> there's no question if that's the only product we were able to provide that customer set, it
4:20 pm
would be a lot more b difficult for our business. but we are have a broad range of of services for customers. >> let me ask you about $7 fee in six states. bank of america tried to institute an extra fee. they faced real backlash. are you afraid of backlash? how are you going to get buy-in from customers? >> what we have to do is provide great product and services to customers. we have a terrific base of over 6,000 stores across the country. over 12,000 atms. we are providing a lot of convenience and value to customers. we want it get paid a fair price. >> in terms of the expansion we touched on a moment ago whether for retail brokerage, let's talk about internationally. there is a piece in the times recently you are trying to expand the press neens 20 markets outside the u.s. where looks opportunistic? >> we want to go where our customers want to go. we are talking to them, listening to them. they're telling us where we should have our people and
4:21 pm
offices. we picked 20 different countries to expand in. and that's fine. they are really good opportunities. we think that we can provide value to them. >> i guess there are pop lalgs stories. population growth that people need financial services. >> you have a growing middle class all around the world. our focus is much more on large corp rates, helping them do business, both inside and outside the u.s. as well as financial institutions around the world. >> what can you tell us about the regulatoriern viernment today. we were dominated by talk of regulation and that was stopping some of the banks. your colleagues are from instituting hires and putting money to work. where are we in terms of the regulatory. there is still a fair amount of uncertainty. >> there is uncertainty. frank dod is not in place. there is uncertainty with capital rules but the financial industry has been regulated for
4:22 pm
hundreds of years. what we are going through right now seems more difficult. but we will get through it. we will be fine. in terms of wells fargo, well be fine. we have a diversified model and we are doing really well. >> amazing that now you are the largest bank by market value. when you look at what you just went through in terms of the stress test, what's the next catalyst in terms of measuring the health of the industry? is it another regulatory? another fed institute? >> i think it is primarily just performance. the financial services industry needs to demonstrate that we can perform in this kind of slower growth lower rate environment. we have been able to do that. that's why we are the most valuable financial services in the country. >> do you think rates will move higher soon? we are seeing money move from fixed income. what do you think that means. >> feds say stocks will be low until 2014. markets may be saying something different. i don't know for sure. wish i did.
4:23 pm
>> it is tough for you to make money with record low rates. >> tougher than slightly higher rate. but we don't make all of our money just spr spread income, from loans and securities. we make about 50% of our income there. the other 50% comes from fees in terms of providing product and services to customers. we will be fine in thissern viernment. we have eight could consecutive earnings of growth. >> thank you. >> thank you maria. good seeing you. >> tim sloan is cfo of wells fargo. investors are loving lion's game. a blockbuster film is set to be released. >> i'm julia born steen in los angeles. hunger games is on track to open bigger than twilight. i will tell what you this means for lion's game and who the big loser is for this mega movie franchise in the works. coming up later in the closing bell. >> meanwhile, sentiment stays at nearly five-year high. why did the home builder slump today? we will look at story.
4:24 pm
>> that's right. rising for five months straight, but then in march took a a pause. we as the years go by, some questions loom large. are you prepared for your retirement years - 25 or more of them? do you have a financial plan for you family that works, in good times and in bad times? having the right perspective can help you answer the big questions. for more than 140 years, pacific life has helped find answers for those navigating the path to financial security. ask a financial professional about pacific life -
4:25 pm
the power to help you succeed. [ donovan ] i hit a wall.
4:26 pm
and i thought "i can't do this, it's just too hard." then there was a moment. when i decided to find a way to keep going. go for olympic gold and go to college too. [ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this is your moment. let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. welcome welcome back. the housing mark set showing signs of life recently.
4:27 pm
diana has the details. diane? >> home builder stocks have been on a tear the last six months but a weaker than expected home building sentiment, take a look. there was steady games for five months until a hiccup in march until a survey was unchanged from a downwardly revised february. it is still well below the line between positive and negative. that hit the stocks hard. specifically out west where sentiment fell the hardest. kb home is particularly vulnerable there. breaking out into other regions, dr horton and lennar. now this was the first in a slew of housing data we're getting this week. housing starts tomorrow. then existing and new home sales later in the week. a look back at february, one thing we will look at closely is if all this warm weather we are having pulled spring demand to jn and february. we are talking about that on the
4:28 pm
blog as well. maria some. >> thank you so much, diana. get ready for another hollywood blockbuster, meanwhile. >> five, four, three, two, one. >> coming up, breaking down the big winners and losers in the release of hunger games. and race for the republican presidential nomination, is ron paul staying in the race, or will he bow out and support one of his rivals. we will ask him next. cannot be contained. [ clang ] the all-new 2013 lexus gs. there's no going back. see your lexus dealer.
4:29 pm
all in one account. keep watch on the markets. or use our exclusive tools to help find ideas. it's powerful, easy-to-use technology for trading stocks, options, and futures. keep trading whether you're at home, in the office, or on the go. optionsxpress, the broker smart traders deserve. open an account today at optionsxpress.com.
4:30 pm
4:31 pm
welcome back. on the floor of the welcome back. on the floor of the new york stock exchange. in line with earnings expectations, i see they raised their revenue growth target a little bit. remember, adobe has been in a multi-month high. that stock is trading down, as you can see, in after hours. bottom line, we moved up in all of the major sectors and all of
4:32 pm
the major indexes sit and closed at new highs here, essentially. nasdaq's had an amazing run. technology stocks up 18%. nasdaq up 18% for the quarter as we close out the quarter within the next week or so. financials, materials, energies, industrials, the risk on stocks moving to the upside. maria, back to you. >> thank you so much. let's look at stocks we are following on the ticker tonight. etrade, with market perform, etrade will ten ben fit from retail and housing investing. the stock is up 1 2/3% as can see there. the golf club maker is going to be acquired by tailor made adidas golf for 10.08. that's $70 million. it first announced it was exploring strategic opportunities in january.
4:33 pm
adams golf surged today 9%. domino's pizza, the second largest u.s. pizza chain, a special dividend of $3 a share to reward shareholders following replace many of 1.7 billion security debt facility. domino's pizza up 3.3% on the session. we are one day away from gop primary in illinois. president obama ae home state. this stake is most of the 69 delegates in illinois. more than any other state so far this year, except georgia. as voters cast ballots tomorrow, we talk to one republican hopeful, congressman ron paul joins us now for an exclusive interview. congressman, good to have you on the program. >> thank you, maria. >> have you less than one ten nl that your opponent, mitt rm knee, has collected. you have failed to win any single state. how will you continue to garn garnish rapport, or will you bow
4:34 pm
out. >> no, many of the states we worked hard in, are in the process of caucusing. that takes a couple months to work through that. some of the states that, you know, that they said i did not win, when the votes are counted, and the delegates are counted, we may well control those delegations. but you know, it looks like there is a very good chance that there will be a brokered convention. if you have 2 or 300 delegates, who knows what role can you play in those circumstances. >> congressman, do you worry that you and some of your colleagues, with all of this fighting and back and forth, that you're actually impacting the party, gop, negatively and actually hurting what i imagine the goal is here. that is to beat president obama? are you cutting into the credibility of the republican party while staying in the race when you don't have the support that some others have, like mitt romney?
4:35 pm
>> know, i don't think debating the issues do. the democrats did it last go round and it didn't destroy their party. the biggest thing is what is the image of the republican party. if the image is they are promoting only one thing, that obama is too weak and we need more war, more spending, more invasion of privacy, deal with birth control pills and on and on, some of these things can hurt. but that the whole system. but if it is the debaste issues because i disagree with other candidates or spending, actually i want it cut spending, and none of the others have indicated they could cut anything. i think that's important. it doesn't help obama. it means that you have to have a debate within the republican party. i thought the republicans would want somebody that would really want it cut and be conservative and balance the budget. that of course is what my platform is all about. >> would you consider running for vice presidential
4:36 pm
nomination? >> i wouldn't run for it. i wouldn't consider that. >> well, no oning for it but would you consider a vice presidential nod. >> considering is a pretty broad term. you can consider anything that someone talks about. the likelihood is pretty any miniscule, but to consider and talk about it, a reasonable person would always be will to consider something. >> there's talk that you could throw your support behind mitt romney. if he fails -- if he falls short of the delegates, any truth to that? would you back romney if you were to accept aside. >> like i said, i would consider certain things. but the rumors that go around must be very secretive because nobody talked to me about it and i haven't talked to anybody else about it. there is not a lot to the talk. >> congressman, let's get to issuees. one thing frustrate meg is that all of this fighting back and
4:37 pm
forth, he said, she said, we're not talking about the issues of the american economy and what pocketbook issues people want it hear about. let me get your take on the price of oil and gasoline. very high levels right now. as president, what would you do to keep prices contained? >> quit inflating the currency. just quit debasing the currency. the other day when bernanke was before the committee, we talked about the price of gasoline. i said, well, in terms of a silver dollar that i held up, it only costs a dime. so is it is the money that's going bad. it isn't the -- it isn't the sound currency. prices are actually going down. so you have to quit despending, quit allowing the fed to mon advertise debt. change the whole fe loss if i also if i that you get out of debt by increasing exponentially worldwide. that to me is crazy talk. and they say why are prices going up. well, they are going up mainly for monetary reasons but also for hindrance to drilling and
4:38 pm
overregulation and various things like that. those are contributing factors. but big issue is the valuation of currency. so expect energy prices to continue unless we deregulate and allow us to have a sound currency, then you would have low prices of oil. oil prices would be going down as they have in gold and silver the last 30, 40 years. >> which is why have you been critical of the federal reserve. a lot of people have said the fed has done a better job than the treasury and government in terms of getting us out of the economic upset of 2008. >> i wonder what statistics they are reading. inflation is very, very significant. debt is exploding. and all we're doing is increasing the amount of regulations. that's congress's fault. more regular regulation. whether it is dodd-frank or
4:39 pm
obamacare. no wonder people don't want it invest. now there is competition for the dollar because other people want it use something other than the dollar. so we will lose control of this. we have had special benefits over the last 40, 50 years by issuing reserve currency. but i see that shifting. and that will play havoc with us. and that will be one of the most important issues that we will have to deal with. >> let's talk about the unemployment rate. last check was 8.3%. you say closer to 20% because it doesn't include people who stopped looking. what is your solution to high unemployment? >> you have to restore confidence. you have to quit spending and know we won't just finance debt. you have to get credit allocated by the market the fed creates credit out of then air. they send it the wrong way and congress has control. you want to investments to occur under free markets and under
4:40 pm
capitalism. you save money, have market interest rates and then, people make their own judgments. but today, that doesn't happen. it is all done through politicians and bureaucrats and federal reserve. that's how we got into the trouble they create the bubbles. and then they try to get out of recessions by making a new bubble. they have been able to do this pretty well for a while. and even pulled out of the nasdaq bubble crash. and housing bubble crash. nobody can argue they have been successful in the five years. we're not just back building houses again. i with say we have a long way to go to recover with the policies today. >> the feds said they will keep rates at record lows levels until the end of 2014. feels like more to come on that front. we will be watching you in illinois. congressman, good to have you on the program. we so appreciate your time tonight. >> thank you very much. >> thank you. congressman ron paul joining us. up next, mega change.
4:41 pm
we will look at apple which is changing the world and continues to. apple says it sold 3 million ipads since friday. the launch on friday. we are going to cover that when we come back. then we will look at mega change. find out what world can look like by the year 2050 and how glimpsing in the ninto the futue can help you today. ♪ ♪ here we are, me and you ♪ on the road
4:42 pm
♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way ♪ oh, oh ♪ ( whirring and crackling sounds ) man: assembly lines that fix themselves. the most innovative companies are doing things they never could before, by building on the cisco intelligent network. ♪ when your chain of supply goes from here to shanghai,
4:43 pm
that's logistics. ♪ ♪ chips from here, boards from there track it all through the air, that's logistics. ♪ ♪ clearing customs like that hurry up no time flat that's logistics. ♪ ♪ all new technology ups brings to me, that's logistics. ♪
4:44 pm
welcome welcome back. major headlines coming out after apple announced it sold 3 million ofity latest ipads since the ipad went on sale friday. the company saying it is a blockbuster. strongest ipad yet. impacting apple stock and after hours trading, trading at an all-time high. walt disney announcing moments ago that john carter is going to generate an operating loss of approximately $200 million in fiscal second quarter. as a result of this john carter bomb, the studio will have an operating loss between 80 million and $120 million. the studio does point out that john carter has grossed $184 million at worldwide box office but it was incredly expensive movie. after speculation of how much it would cost the studio. >> today we kick off a week-long exclusive serious called mega
4:45 pm
chain. cnbc is teaming up with the economist magazine to look at year 2050. examining changes from demographics, to technology, to the world economy. it present a unique opportunity to talk about the future and how that can influence decisions by make today. joining me to get things start said daniel franklin. executive editor of the economy and book of mega change, the world in 2050. thank you so much for joining us. >> thank you. good to be with you. >> what inspired meg kra change? what about looking ahead to 2050 can help us today? >> well, first of all, every year we produce a book on the year ahead, a special issue of the economist called "the world end." looking to the future is good. but look together long-term future is especially stimulating because it enables you to focus on the really big trends to clear away the clutter, noise and really get a sense of what matters. as you say, that enables you
4:46 pm
also to reflect back on today as well as the future and see today in its context. >> of course we see so many investable items around some of these mega changes. and these trends. talk to us about some life-changing trend that you're looking at. in particular the demographics of the world will undergo quite a change. >> yes. the demography of our planet is changing very, very rapidly. taking 1 years for us to add our latest billion to 7 billion people. where as it took 250,000 years to put on the first billion and around 1800. there will be another 2.3 or so billion people added to the planet between now and 2050. so just those broad numbers are quite eye-catching. but when you start it look into the details about where the people are going to be, the trends in age of different countries and so on, then it really gets particularly interesting. so for example, one in every two
4:47 pm
people on the extra people on the planet between now and 2050 will probably be in africa. so that right away puts that continent in the spotlight. >> did you see more implications of the demographic evolution? >> absolutely. i mean, the aging of the rich world is a particularly striking feature. so as we know, that has big implications from what we do about healthcare and the sorts of economic patents we are likely to see. there are countries in the world that get particularly populous. so nigeria for example will probably have close to 400 million people by 2050 and be nearly as populous as the united states. it is interesting also to look at china in that context. china is a huge country, growing so rapidly bp by 2050 it will be an aging society and probably
4:48 pm
growing economically at around 2.5% a year. >> and you point out that the era in which the suites reigns supreme is coming to an end. tell us about that. >> well, pretty soon china will overtake the united states as the world's biggest economy. that will probably happen around 2018, 2019, something like that. but america will still be by far the richest country, and in many ways the most dynamic technologically and in other respects. this is not to say that america's era of being a huge global economic power is over. but it does mean that others are getting very significant indeed. and asia generally will probably be about half the world's economy, half the world's gdp by 2050. >> that's extraordinary. what about technolooeechnology
4:49 pm
evolution? >> in some cases that's happening, you have the incredible video conferencing possibilities. i think people will still be wanting it meet face-to-face in many context. but there are alternatives. and those alternatives are becoming cheaper and cheaper. and that trend will continue for not just for businesses, but for individuals as well. there are extraordinary excitement, i think ahead, particularly under biology, of all the sciences i would expect that to be an area where there's going to be particular rapid exciting discoveries, allied with information science. and that will play into great jeera of innovation in medical sciences as well. >> i'm sure. >> and another great area of innovation, i think, is in traditional manufacturing where totally revolutionary techniques will, starting to be visible and by 2050 will be, i think, just
4:50 pm
common place. so the idea of manufacturing, almost like printing 3-d printing. 3d printing where you totally change the way things are made by adding layer upon layer of chipping away at bits of material. that can totally change the way we make things in the future. >> very exciting things to come. we appreciate your time and see you soon. tar are thank you. >> daniel franklin. for more about the big trends. check out mega chains.cnbc.com. >> fans of the hunger games are set to spend time at the box office this weekend. there is a big loser potential for the blockbuster. do stay with us. [ male announcer ] what if you had thermal night-vision goggles,
4:51 pm
like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.
4:52 pm
4:53 pm
the the hunger games does not open until friday, but they are well on the way to posting one of the biggest weekends ever in the box office. julia boorstin, lion's gate shares at an all time high in anticipation for the hunger games. >> huge anticipation and also
4:54 pm
because they make mad men. there is no doubt that hunger games have done wonders for the stock. there is an expectation that this movie will gross between 70 and $100 million at the box office opening weekend. some estimates for that number as high as $115 million. it seems like this movie will do better than twilight out of the gate. that bodes well not just for this film, but the other three hunger game films that lion's gate has in the works. >> surely looks to be a big win. are there losers here? who is winning while lion's gate is losing? >> the big one is carl icon. he dropped the bid for the studio and sold his 44 million shares at $7 a pop. now they are about double that. he missed out on $300 million in value because of selling when he did.
4:55 pm
>> right on the pick, but wrong on the timing. which of the companies stand to benefit? >> lion's gate will benefit, but the books will see a huge boost in popularity because of the movie. scholastic that publishes the books has seen a spike. we are seeing amazon with a huge spike in readers of the books. suzanne khan is the most popular author on the amazon kindle. one more is i-max. >> we will be watching that and certainly anticipate a big opening weekend. julia boorstin. icate kelly has more headlines and information on bank of america which we have been watching trade lower. kate? >> thank you so much. breaking news. we have a statement from b of a regarding speculation that they are undertaking a secondary offering. they are denying that and contrary to rumors, they have no
4:56 pm
intention of issuing a secondary offering. this just out a couple of minutes ago and concurs with what i was hearing and despite the rumors, an interesting day as well. they spiked above $10 over the last three months or so. they doubled the stock price. it's quite a come back of course as you know there lingering overhangs to the stock. >> that's amazing. i don't know how this happens. all over the streets, they are talking about a secondary move the stock. we have to get a comment from bank of america. >> it's interesting. we have been talking a lot about ipo and facebook in particular. they have been hot and a lot of them are happening. this is in vogue, but in this case not true. >> i wonder if the number $10 had a lot to do with it? people see that as a barrier to get through and when they hit ten, that sort of triggered a cell signal for investors. it's a double in a short period
4:57 pm
of time. >> about three months ago, they were trading around $5. a heard consideration of doing what citigroup did. the reverse 1-10 stock split to improve that shas price. it's not a dead issue, but there is less support. don't look for that. kate kelly, thanks for being with me. fast money next. i will see you on twitter and google plus. have a good night. ♪ [ laughter ] ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial
4:58 pm
can help you take charge of your future. ♪ hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. i have to be a tree in the school play.
4:59 pm
good. you like trees. well, i like climbing them, but i've never been one. good point. ( captain ) this is your captain speaking. annie gets to be the princess. oh... but she has to kiss a boy. and he's dressed up like a big green frog ! ewww. ( announcer ) fly without putting your life on pause. be yourself nonstop. american airlines.
left
right

117 Views

disc Borrow a DVD of this show
info Stream Only

Uploaded by TV Archive on